National Consumer Protection Week 2012 Kicks Off Sunday, March 4

The Federal Trade Commission and more than 30 other federal agencies, consumer groups and national advocacy organizations, in conjunction with state, county, and local government agencies, are participating in National Consumer Protection Week, March 4-10, 2012. National Consumer Protection Week is a coordinated campaign to focus attention on the importance of consumer information and provide people with free resources explaining their rights in the marketplace.

David Vladeck, Director of the FTC’s Bureau of Consumer Protection, noted the campaign’s website, NCPW.gov, available in English and Spanish, hosts a variety of resources on topics that matter to the nation’s consumers.

“The information on NCPW.gov can help consumers understand their rights, protect their privacy online and off, manage credit and debt, avoid identity theft, recognize foreclosure rescue scams, and report fraud,” Vladeck said. “Visitors can download and print materials to share with friends and neighbors, or use the toolkit to plan a larger community event.”

To get materials and view a list of agencies participating in the 14th annual celebration of consumer protection and consumer education, visit the NCPW About Us page.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call
1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook and follow us on Twitter.

FTC Will Host Public Workshop to Explore Advertising Disclosures in Online and Mobile Media on May 30, 2012

The Federal Trade Commission will host a day-long public workshop to consider the need for new guidance for online advertisers about making disclosures required under FTC law. The guidance will address technological advancements and marketing developments that have emerged since the FTC first issued its online advertising disclosure guidelines known as “Dot Com Disclosures” 12 years ago.

The workshop, to be held on May 30, will cover revising the Dot Com Disclosures so they illustrate how to provide clear and conspicuous disclosures in the current online and mobile advertising environment. Any revisions will be consistent with the goals of the original guidelines and will continue to emphasize that consumer protection laws apply equally to online and mobile marketers, and to other media. The FTC began seeking input for revising the Dot Com Disclosures guidelines last year.  

Topics may include:

  • How can effective disclosures be made on social media platforms and mobile devices – including when they are used in commercial texting – that limit the space available for disclosure?  For example, when consumers are paid or receive other benefits for providing an endorsement, how can they effectively disclose on platforms that allow only short messages or a simple sign of approval?
  • When can disclosures provided separately from an initial advertisement be considered adequate?  For example, if a consumer receives a location-based ad for a discounted cup of coffee on her mobile device because she is near a particular coffee shop, what terms must be disclosed in the mobile ad and what terms, if any, do not have to be disclosed until the consumer enters the coffee shop to make her purchase?
  • What are the options when using devices that do not allow downloading or printing the terms of an agreement?  For example, is providing consumers a means to send a copy of the agreement to themselves to read later an effective way to provide this information?
  • How can disclosures that are made in the original advertisement be retained when the advertisement is aggregated (for example, on dashboards) or re-transmitted (through, for example, re-tweeting)?  
  • What are the disclosure opportunities and limitations of hyperlinks, jump links, hashtags, click-throughs, layered disclosures, icons, and other similar options?  How should these options be evaluated in terms of placement and proximity?
  • How can short, effective, and accessible privacy disclosures be made on mobile devices?
  • What does the research show about how consumers’ use of mobile and other devices can affect the effectiveness of disclosures on particular devices or platforms?  And what does it show about the relationship between how consumers use mobile devices and their understanding of disclosures and advertising displayed on mobile devices?  What does the research show about how consumers make decisions based on that information?  Is there specific research on the effectiveness of disclosures on mobile devices, including layered disclosures and icons, and, if so, what are the implications of that research for disclosures such as offer terms and privacy practices?

The Commission also invites parties to submit suggestions for topics of discussion or original research.  In particular, the Commission invites the submission of realistic examples and mock-ups that can be used for illustration and discussion at the workshop. Individuals and organizations may submit requests to participate as panelists and may recommend topics for inclusion on the agenda.  The requests and recommendations should be submitted electronically to [email protected]. Prospective panelists should submit a statement detailing their expertise on the issues to be addressed and contact information no later than March 30, 2012. Panelists will be selected based on expertise and the need to include a broad range of views.

Paper submissions should reference the Dot Com Disclosures Workshop both in the text and on the envelope, and should be mailed or delivered to: Federal Trade Commission, Office of the Secretary, Room H-135 (Annex P), 600 Pennsylvania Avenue, N.W., Washington, DC 20580.  The FTC requests that any paper submissions be sent by courier or overnight service, if possible, because postal mail in the Washington area and at the Commission is subject to delay due to heightened security precautions. The workshop is free and open to the public.  It will be held on Wednesday, May 30, 2012, at the FTC Conference Center at 601 New Jersey Avenue, N.W., Washington, DC.  Pre-registration is not required.  Members of the public and press who wish to participate but who cannot attend can view a live Webcast at FTC.gov.

Reasonable accommodations for people with disabilities are available upon request. Requests should be submitted via e-mail to [email protected] or by calling Carrie McGlothlin at 202-326-3388. Requests should be made in advance. Please include a detailed description of the accommodation needed, and provide contact information.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.  To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357).  The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad.  The FTC=s website provides free information on a variety of consumer topics. Like the FTC on Facebook and follow us on Twitter.

(Dot Com FYI)

FTC Puts Conditions on Carpenter Technology Corporation’s Purchase of Rival Manufacturer Latrobe Specialty Metals, Inc.

The Federal Trade Commission will require specialty metals manufacturer Carpenter Technology Corporation to sell assets involved in producing two metal alloys used in the aerospace industry, under a proposed settlement resolving charges that Carpenter’s proposed $410 million acquisition of Latrobe Specialty Metals, Inc. would harm competition in the U.S. markets for these alloys.

The proposed settlement is part of the FTC’s efforts to preserve competition that benefits consumers by keeping prices low and quality and service high. It requires that, in order to complete the deal, Carpenter divest assets necessary for manufacturing the two alloys – MP159 and Aerospace MP35N – to another metals manufacturer, Eramet S.A.

The FTC’s complaint alleges that Carpenter and Latrobe are the only companies that make these highly specialized alloys, and that the combination of the two companies would be anticompetitive in the U.S. markets for both alloys. The deal – a merger to monopoly – likely would lead to higher prices for consumers of the two alloys, in violation of the FTC Act and Section 7 of the Clayton Act, according to the complaint.

By requiring the two companies to divest assets to Eramet, the FTC’s proposed settlement will preserve competition in the markets for the two alloys, according to the FTC. Eramet is a multi-billion dollar integrated mining and metallurgy company with extensive experience in manufacturing and selling specialty alloys.

To ensure that the divestiture is a success, Carpenter must provide Eramet with the product licenses and manufacturing technology needed to produce the alloys, including technical assistance from current Latrobe employees, as well as certain confidential business information related to manufacturing the alloys. Carpenter is also required to contract-manufacture both alloys for Eramet until the latter is able to produce them on its own. Finally, the FTC has appointed an interim monitor to ensure that the relevant assets are divested successfully, and can appoint a divestiture trustee to complete the sale, if necessary.

The Commission vote approving the complaint and proposed consent order was 4-0. The proposed order with will be published in the Federal Register shortly, and will be subject to public comment for 30 days, until March 29, 2012, after which the Commission will decide whether to make it final.

NOTE: The Commission issues a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The issuance of a complaint is not a finding or ruling that the respondent has violated the law. A consent order is for settlement purposes only and does not constitute an admission of a law violation. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $16,000.

The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to [email protected], or write to the Office of Policy and Coordination, Bureau of Competition, Federal Trade Commission, 601 New Jersey Ave., Room 7117, Washington, DC 20580. To learn more about the Bureau of Competition, read Competition Counts. Like the FTC on Facebook and follow us on Twitter.

(FTC File No. 111-0207)
( Carpenter-Latrobe.final)

FTC Releases Top Complaint Categories for 2011

The Federal Trade Commission today released its list of top consumer complaints received by the agency in 2011. For the 12th year in a row, identity theft complaints topped the list. Of more than 1.8 million complaints filed in 2011, 279,156 or 15 percent, were identity theft complaints. Nearly 25 percent of the identity theft complaints related to tax- or wage-related fraud.

The report breaks out complaint data on a state-by-state basis and also contains data about the 50 metropolitan areas reporting the highest per capita incidence of fraud and other complaints. In addition, the 50 metropolitan areas reporting the highest incidence of identity theft are noted.

The next nine complaint categories are:

  Number Percent
Debt Collection Complaints 180,928 10 percent
Prizes, Sweepstakes, and Lotteries 100,208 6 percent
Shop-at-Home and Catalog Sales 98,306 5 percent
Banks and Lenders 89,341 5 percent
Internet Services 81,805 5 percent
Auto Related Complaints 77,435 4 percent
Imposter Scams 73,281 4 percent
Telephone and Mobile Services 70,024 4 percent
Advance-Fee Loans and Credit Protection/Repair 47,414 3 percent

There is a complete list of 30 categories.

The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the United States and abroad. Enforcers search the database to research cases, track targets, and identify victims.

“The FTC’s Consumer Sentinel Network is an incredibly powerful tool for law enforcers who are working to protect consumers and go after the bad guys,” said David Vladeck, Director of the agency’s Bureau of Consumer Protection. “It’s used by agencies across the country and around the world to enhance their enforcement efforts.”

Other federal and state law enforcement agencies contribute complaints to the Consumer Sentinel Network, including the U. S. Postal Inspection Service, the Department of Justice’s Internet Crime Complaint Center, and the Offices of the Idaho, Michigan, Mississippi, North Carolina, Ohio, Oregon, Tennessee, and Washington Attorneys General. Private-sector organizations that contribute complaints include all U.S. and Canadian members of the Better Business Bureau, Western Union and Moneygram, and the Lawyers Committee for Civil Rights Under Law.

“The Consumer Sentinel Network is a treasure trove of information for law enforcers,” said Richard Cordray, Director of the newly created Consumer Financial Protection Bureau. “We plan to contribute consumer complaints we receive at the CFPB to the Network and urge other state and local law enforcers to join the Network, too.”

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook and follow us on Twitter.

(2011 complaints)

FTC Action Leads to Court Orders Banning Marketers from Selling Vacation Packages

The operators behind a vacation prize scheme are banned from selling vacation packages under settlements with the Federal Trade Commission and Florida Attorney General Pam Bondi’s Office, which charged the defendants with tricking consumers into believing they had won a vacation package as a prize, and then failing to provide the package as promised. The settlements resolve the case, which was brought as part of the FTC’s Hispanic Law Enforcement Initiative.

According to the complaint filed in May 2011, the defendants advertised a vacation package worth thousands of dollars as a prize to consumers who called a toll-free number and answered a trivia question. Callers were told they had won, and that if they paid up to $400 in “taxes” or “fees” they would receive their prize. The complaint alleged that callers did not receive the vacation packages as promised. The FTC and the Florida Attorney General’s Office charged the defendants with violating the FTC Act and the Florida Deceptive and Unfair Trade Practices Act, respectively.

“By working closely with the Federal Trade Commission, our two agencies have stopped this business from deceiving consumers,” Florida Attorney General Pam Bondi said. “This is an excellent example of state and federal agencies working together to protect consumers.”

The defendants are VGC Corporation of America, also doing business as All Dream(s) Vacations, All Dreams Travel, Five Star(s) Vacations, 5 Star(s) Vacations, Total Tours, and Travel & Tours Corp.; All Dream Vacations Corp., also doing business as All Dreams Vacations; Violeta Gonzalez, also known as Violeta Rojas; Cesar A. Gonzalez; and Samir Jose Saer Rodriguez, also known as Samir Saer.

In addition to banning the defendants from the marketing and sale of vacation packages, the settlement orders permanently prohibit them from misrepresenting material facts about any good or service, and from failing to disclose any material conditions to buy, receive, or use any good or service. The defendants also are barred from collecting payments from their customers who responded to the offer before the date of the order, using or selling those customers’ personal information, and failing to properly dispose of customer information. The orders also impose a judgment of more than $14 million, which will be suspended on the satisfaction of numerous terms and conditions designed to ensure that the defendants will be stripped of all of their assets of value. The full judgment will be imposed immediately if the defendants are found to have misrepresented their financial condition.

The FTC gratefully acknowledges the hard work and cooperation of its partner and co-plaintiff, the Florida Attorney General’s Office. The FTC also appreciates the assistance of the Florida Department of Agriculture and Consumer Services, the Commonwealth of Puerto Rico Department of Consumer Affairs, and the Better Business Bureau Serving Southeast Florida and the Caribbean.

For more information about travel scams, read Telemarketing Travel Fraud, or play an online game, Gear Up For A Great Trip, also available as Prepárate Para Un Feliz Viaje.

The Commission vote approving the proposed consent orders was 4-0. The FTC and the State of Florida filed the proposed consent orders in the U.S. District Court for the Southern District of Florida. The orders were entered by the court on February 17, 2012.

NOTE: The consent orders are for settlement purposes only and do not constitute an admission by the defendants that the law has been violated. Consent orders have the force of law when approved and signed by the District Court judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook and follow us on Twitter.

(FTC File No. X110034)

FTC Requires Fresenius Medical Care AG to Sell 60 Dialysis Clinics Around the Country as a Condition of Acquiring Liberty Dialysis Holdings, Inc.

The Federal Trade Commission will require Fresenius Medical Care AG & Co. KGaA to sell 60 outpatient dialysis clinics in 43 local markets under a proposed settlement resolving charges that its acquisition of rival dialysis provider Liberty Dialysis Holdings, Inc. would harm competition in numerous local markets for outpatient dialysis services around the country.

The proposed order announced today is the latest action taken by the FTC to ensure that consumers continue to have access to a range of choices in a competitive health care marketplace. By requiring the sales, the FTC settlement preserves competition in each of the local markets, and protects renal care patients from anticompetitive price increases or reductions in quality of care.

Under an agreement dated August 1, 2011, Fresenius proposed to acquire Liberty for approximately $2.1 billion. Headquartered in Bad Homburg, Germany, Fresenius operates more than 1,800 outpatient dialysis clinics throughout the United States, treating approximately 130,000 patients each year. Its total revenues in 2010 were $8 billion. Privately held Liberty, headquartered in Mercer Island, Washington, is the third-largest provider of outpatient dialysis services in the country. It operates 260 dialysis centers, providing services to approximately 19,000 patients in 32 states and the District of Columbia.

According to the FTC’s complaint, Fresenius’s proposed acquisition of Liberty would be anticompetitive, and would violate Section 5 of the FTC Act and Section 7 of the Clayton Act by reducing competition for outpatient dialysis services. Patients suffering from end stage renal disease use outpatient dialysis treatments to remove toxins and excess fluid from their blood. Most of these patients receive dialysis treatments three times a week, in sessions lasting between three and five hours. Kidney transplantation is the only alternative treatment to dialysis services, but the wait-time for a replacement kidney can be more than five years, and during that time these patients must be on dialysis.

Many end stage renal disease patients are very ill, making it difficult for them to travel more than 30 miles from their home for treatment. As a result, competition between dialysis clinics usually happens at the local level.

According to the FTC, Fresenius’s acquisition of Liberty would eliminate head-to-head competition between the firms in the 43 markets at issue, leading to higher prices and reduced quality for dialysis consumers. The proposed acquisition allegedly would to lead to monopolies for outpatient dialysis services in 17 of the 43 local markets. In 24 other markets, the proposed acquisition would cause the number of dialysis providers to drop from three to two. Competition would be significantly reduced in the remaining two markets, the FTC alleges.

The proposed order remedies these competition concerns by requiring Fresenius to divest 54 clinics to Dialysis Newco, Inc., of Nashville, Tennessee; one outpatient clinic to Alaska Investment Partners LLC of Anchorage, Alaska; and five clinics to Dallas Renal Group, of Dallas, Texas. The proposed order also requires Fresenius to end one management services agreement, under which it manages an outpatient dialysis clinic on behalf of a third party. For each clinic it is selling, Fresenius also must assure the doctors currently working there will stay with the clinic after it is sold.

To ensure the required divestitures are successful, the proposed settlement order contains additional terms: 1) providing each buyer with the chance to interview and hire employees affiliated with the clinics they are buying, and preventing Fresenius from offering these employees incentives to decline offers to work with the acquirer; 2) preventing Fresenius from contracting with the medical directors of the divested clinics for three years; 3) if necessary, requiring Fresenius to provide transition services to the divested clinics for up to 12 months; 4) requiring Fresenius to provide each buyer with a licence to use its policies, procedures, and medical protocols at the divested clinics; and 5) requiring Fresenius to notify the FTC before acquiring dialysis clinics in any of the 43 geographic markets addressed in the order.

The Commission vote approving the complaint and proposed consent order was 4-0. The proposed order with will be published in the Federal Register shortly, and will be subject to public comment for 30 days, until March 29, 2012, after which the Commission will decide whether to make it final.

NOTE: The Commission issues a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The issuance of a complaint is not a finding or ruling that the respondent has violated the law. A consent order is for settlement purposes only and does not constitute an admission of a law violation. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $16,000.

The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to [email protected], or write to the Office of Policy and Coordination, Bureau of Competition, Federal Trade Commission, 601 New Jersey Ave., Room 7117, Washington, DC 20580. To learn more about the Bureau of Competition, read Competition Counts. Like the FTC on Facebook and follow us on Twitter.

(FTC File No. 111-0070)
(Fresenius-Liberty.final)

FTC Approves Final Order Settling Charges that Sigma Corporation Acted Anticompetitively in Market for Municipal Water System Iron Pipe FittingsFTC Determines Not to Modify Final Order Settling Charges that AmeriGas’s Proposed Acquisition of Rival

Following a public comment period, the Federal Trade Commission has approved a final order settling charges that

Following a public comment period, the Federal Trade Commission has determined not to modify a final order settling charges that AmeriGas L.P.’s proposed acquisition of Energy Transfer Partners L.P.’s Heritage Propane business would have reduced competition and raised prices in the market for propane exchange cylinders that consumers use to fuel barbeque grills and patio heaters. The final FTC order resolving the charges protects consumers by requiring AmeriGas to exclude ETP’s cylinder exchange business, Heritage Propane Express, from the sale.

The Commission vote was 4-0. (FTC File No. 121-0022, Docket No. C-4346; the staff contact is Thomas N. Dahdouh, FTC Western Region, San Francisco, 415-848-5122.; see press release dated January 11, 2012.)

The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to [email protected], or write to the Office of Policy and Coordination, Bureau of Competition, Federal Trade Commission, 601 New Jersey Ave., Room 7117, Washington, DC 20580. To learn more about the Bureau of Competition, read Competition Counts. Like the FTC on Facebook and follow us on Twitter.

(FYI 9.2012.wpd)

International Enforcement Network Meetsto Address Cross-Border Consumer Fraud

The Federal Trade Commission, members of the International Consumer Protection and Enforcement Network (ICPEN), and Costa Rican, U.S. and other dignitaries are meeting in San Jose, Costa Rica from February 27 through March 2 to review international efforts to combat cross-border consumer fraud and explore new global consumer protection initiatives. ICPEN is a network of consumer protection authorities comprised of members from 42 countries and partners from 11 additional jurisdictions. The FTC’s participation in ICPEN is an important component of the agency’s ongoing efforts to combat cross-border consumer fraud. More than 40 jurisdictions and 170 officials are participating in the meetings.

The ICPEN meeting will include a keynote speech from the President of Costa Rica, Laura Chinchilla, and will be attended by the U.S. Ambassador to Costa Rica, Anne Slaughter Andrew. FTC Commissioner Edith Ramirez will deliver a speech on consumer protection issues posed by the expansion of the top level domain name system operated by the Internet Corporation for Assigned Names and Numbers (ICANN). The FTC previously warned ICANN that its planned rapid expansion of the domain name system could leave consumers more vulnerable to online fraud and undermine law enforcers’ efforts to track down online scammers.

“ICPEN members collaborate on important consumer protection issues in the online
marketplace – from fraud to privacy to Internet governance,” Commissioner Ramirez said. “ICANN’s dramatic expansion of top-level domains poses serious consumer protection concerns for all countries – the precise type of problems that ICPEN is here to address.”

During the conference, ICPEN members will also explore current issues facing consumer protection authorities, such as false advertising, wire transfer fraud, and the new
enforcement challenges posed by emerging online and mobile payments. The ICPEN
Enforcement Steering Group, which the FTC leads, will also launch a new project to develop an online investigations training manual. This manual will draw on the participation of consumer protection law enforcement officials to identify superior investigative practices and procedures. The conference will include a two-day “best practices” training on topics such as conducting investigations of “negative-option” Internet scams and innovative approaches to consumer education.

The FTC is grateful to the U.S. Agency for International Development for providing
substantial funding for the ICPEN meeting in Costa Rica as part of a larger project initiative under the Central America Free Trade Agreement. This initiative strengthens ties between the FTC and several Latin American consumer protection and competition agencies, increasing cooperation in law enforcement and policy work.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics. Like the FTC on Facebook and follow us on Twitter.

(ICPEN)

FTC Approves Safe Harbor Program for Aristotle International, Inc.

The Federal Trade Commission today announced that Aristotle International, Inc. has been approved as a “safe harbor” program under the terms of the Children’s Online Privacy Protection Act of 1998 (COPPA). COPPA’s “safe harbor” provision is designed to provide flexibility and promote efficiency in complying with the Act by encouraging industry members or groups to develop their own COPPA oversight programs. Operators that participate in a COPPA safe harbor program will, in most circumstances, be subject to the review and disciplinary procedures provided in the safe harbor’s guidelines in lieu of formal FTC investigation and law enforcement.

The FTC’s COPPA Rule requires that operators of commercial websites and online services directed to children under the age of 13, or general-audience websites and online services that knowingly collect personal information from children under 13, must post comprehensive privacy policies on their sites, notify parents about their information practices, and obtain parental consent before collecting, using, or disclosing any personal information from children under the age of 13. COPPA also directed the Commission to review and approve self-regulatory program guidelines that would serve as safe harbors.

To be approved by the FTC, proposed safe harbor guidelines must fulfill three criteria: (1 provide the same or greater protections for children as those contained in the Rule; (2 set forth effective, mandatory mechanisms for the independent assessment of members’ compliance; and (3 provide effective incentives for members’ compliance. Aristotle’s safe harbor application was published in a Federal Register notice on June 27, 2011, and the FTC sought public comment through August 15, 2011.

The Commission vote to approve the Aristotle safe harbor application was 4-0.

Copies of the final Aristotle application are available on the FTC’s website at http://www.ftc.gov and also from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call
1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook and follow us on Twitter.

(aristotle)

FTC Seeks Public Input on Proposed Changes to Appliance Labeling Rule

As part of its systematic review of all current FTC rules and guides,the Federal TradeCommission is seeking public comment on proposed changes to its Appliance Labeling Rule, which requires energy efficiency labels for major household appliances and other consumer products.

New Energy Guide Label (Click for full size)

The Rule, issued in 1979 under the Energy Policy and Conservation Act, calls for the familiar yellow EnergyGuide labels that tell consumers the product’s estimated annual operating cost and energy consumption rating, and a range for comparing the highest and lowest energy consumption for all similar models.

Appliances that have EnergyGuide labels are clothes washers, dishwashers, refrigerators, freezers, water heaters, room air conditioners, central air conditioners, furnaces, boilers, heat pumps, and pool heaters. In addition, in 2010 the Rule was amended to require EnergyGuide labels on televisions manufactured after May 10, 2011.

In reviewing the Rule, the FTC seeks comments on its benefits and costs, and on several proposed changes, including whether the Commission should:

  • eliminate duplicative reporting requirements for manufacturers;
  • require a uniform method for attaching labels to appliances;
  • place EnergyGuide labels on room air conditioner packages instead of the products;
  • improve website disclosures; and
  • revise ceiling fan labels.

For more information about EnergyGuide labels, read Energy Guidance: Appliance Shopping With the EnergyGuide Label.

The Commission vote approving the Notice of Proposed Rulemaking was 4-0. It is available on the FTC’s website and as a link to this press release and will be published in the Federal Register soon. Instructions for filing comments appear in the Federal Register Notice. Comments must be received by May 16, 2012. All comments received will be posted at www.ftc.gov/os/publiccomments.shtm. (FTC File No. R611004; the staff contact is Hampton Newsome, Bureau of Consumer Protection, 202-326-2889)

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call
1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook and follow us on Twitter.

(Appliance Labeling Rule NPR)